Royal Gold Inc. Common Stock (RGLD)

FairStock Score: 43/100 — MIXED

Key Financials

Strengths

• Conservative balance sheet with debt-to-equity of just 0.13, providing financial flexibility
• Altman Z-Score of 5.7 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 85.3% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($113) with negative 119% margin of safety—limited downside protection

AI Analysis

Royal Gold Inc. Common Stock is a mid-cap basic materials company valued at $21.0 billion. The business generates $1.0 billion in annual revenue with a 9.2% net margin. From a quality standpoint, Royal shows Altman Z-Score of 5.7 confirms fortress-level solvency and modest 9% ROE. On valuation, the stock is trading at a premium 37.6x earnings, with trades far above its Graham Number ($113) with no margin of safety. Growth dynamics show revenue growing at 85.3% and profit growth of -12.8%. Our composite FairStock Score of 38/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Royal's 85% revenue growth trajectory could accelerate as it captures additional market share in the basic materials sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 38x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer